Month: December 2020

A sole trader pays private expenses from the business bank account and records them as drawings.

Which accounting principle is applied?

Select ONE answer:

1. business entity
2. going concern
3. matching
4. prudence

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which of the following is the definition of a business as a going concern?

Select ONE answer:

1. The assets owned by the business exceed its liabilities.
2. The business has accumulated revenue reserves.
3. The business is currently liquid and able to pay its creditors.
4. The business will continue in operational existence for the foreseeable future.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The following information relates to a business for a period.

Which amount will be capitalised as the cost of the shop?

Select ONE answer:

1. £680,000
2. £687,200
3. £734,500
4. £747,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – £60,000 +£7,200 + £47,300
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

A trial balance at 30 April 2020, before making end of year adjustments, showed:

At 30 April 2020 it was decided to write off a bad debt of £800 and to make a provision for doubtful debts of 2 % of trade debtors.

During the year an amount of £200 was received from a customer relating to a debt that was written off in the year ended 30 April 2019.

What was the total bad and doubtful debts expense for the year ended 30 April 2020? 

Select ONE answer:

1. £360
2. £560
3. £940
4. £1,140

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – (£17,800 – £800) *0.02 = £340 —> £560 – £340 – £200 + £800
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

A customer paid a deposit in advance for goods to be supplied at a later date.

How should this be recorded in the seller’s books?

Select ONE answer:

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.